Category

Daily Briefs

May 08
0

Daily Brief Credit: Morning Views Asia: Adaro Energy and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Adaro Energy, Greentown China, Vedanta Resources

Morning Views Asia: Adaro Energy, Greentown China, Vedanta Resources

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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May 08
0

Daily Brief Crypto: Bitcoin Battles ETF Outflows and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Bitcoin Battles ETF Outflows

Bitcoin Battles ETF Outflows

By Delphi Digital

  • BTC Spot ETFs Unlock Institutional Capital: Explore the impact of Bitcoin Spot ETFs, opening doors to institutional investment.
  • Market Insights Drive BTC Performance: Understand BTC’s resilience and trajectory through market dynamics and performance analysis.
  • Token Unlocks Shape Market Dynamics: Stay ahead of market shifts by monitoring upcoming token unlocks.

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May 08
0

Daily Brief Equity Bottom-Up: Nintendo (7974) | Negative Surprise….Not Really and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Nintendo (7974) | Negative Surprise….Not Really
  • Taiwan Tech Weekly: Hon Hai New All-Time Highs; Asustek Soars; Leading Chip Testing Firm Exits China
  • [Meituan (3690 HK,BUY,TP HK$150) Rating Change]: A Turning Point Might Have Arrived on Two Catalysts
  • Silicon Motion: Leader in Powerful Niche for Edge AI Memory; Plus Key Wins for Data Center Solution
  • Quint Digital: The New Era of Raghav Bahal
  • Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?
  • Delta Corp’s Links to Mahadev App Scam Reveal Cash Exchange
  • RERE: Trimming 2024 EPS Estimate Ahead of 1Q24 Earnings
  • GlobalWafers (6488.TT): Demand Was Weaker in 1H24F, and We Hope It Will Be Better in 2H24F.
  • China Postal Savings Bank – Lower NIM, But Steady Lending & Credit Costs Suggests All Is Fine?

Nintendo (7974) | Negative Surprise….Not Really

By Mark Chadwick

  • Operating profit: FY3/24 OP was 529 billion yen (+4.9% YoY) vs analyst estimates of 537 billion (1.5% miss)
  • FY3/25 Operating guidance is 400 billion yen, significantly below analyst expectations of 480 billions (-16% miss).
  • The initial market reaction may be negative, we would use that as an opportunity to buy into the stock for the cyclical upturn in FY3/26.

Taiwan Tech Weekly: Hon Hai New All-Time Highs; Asustek Soars; Leading Chip Testing Firm Exits China

By Vincent Fernando, CFA

  • Taiwan Tech Rallies Along With Rebound In Global Tech; Hon Hai, Asustek Top Gainers; KYEC a Top Loser After Announcing China Market Divestment
  • PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle 
  • ASMedia GDR Early Look – Momentum Has Been Strong, and Raising Would Grow Its Cash Base Almost 6x 

[Meituan (3690 HK,BUY,TP HK$150) Rating Change]: A Turning Point Might Have Arrived on Two Catalysts

By Ying Pan

  • We upgrade Meituan because we believe its success in Hong Kong might be replicable on a global scale. 
  • The upcoming autonomous driving (ADS) revolution has deep and fundamental implications in permanently cutting Meituan’s logistic cost;
  • We upgrade the stock from SELL to BUY and raise TP to HK$150/share

Silicon Motion: Leader in Powerful Niche for Edge AI Memory; Plus Key Wins for Data Center Solution

By Vincent Fernando, CFA

  • Silicon Motion’s lQ24 results confirmed the company’s end-demand strength as implied by previous Samsung and SK Hynix management commentary re: solid state memory.
  • Management has increased 2024E guidance, citing rising ASPs and strong demand due to its memory controller products’ usage in edge AI applications such as AI PCs and AI smartphones.
  • The street upgraded target prices across the board after the results; however we note the stock remains below its past acquistion offer price by Maxlinear and we see further upside.

Quint Digital: The New Era of Raghav Bahal

By Sudarshan Bhandari

  • Quint Digital (QUINT IN) announces alterations to its MoA, changing its name and expanding its digital ventures, including joint ventures and acquisitions.
  • Quintype Technologies India Limited’s impressive growth and the acquisition of Lee Enterprises (LEE US) highlight Quint Digital’s ambitions and potential.
  • Despite debt concerns, Quint Digital’s strategic investments in digital media and technology position it for substantial growth, potentially reshaping the digital publishing landscape.

Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?

By Osbert Tang, CFA

  • Singamas Container Holdings (716 HK) is interesting in that it has a net cash of US$300m (HK$2.35bn), but its market capitalisation is only HK$1.5bn. 
  • This is a possible privatisation candidate given the steep discount to cash. The thin trading volume made it difficult to function as a financing platform.
  • Business-Wise, it should have passed the trough as global container box plant utilisation is expected to improve in the next two years, driving profitability recovery.

Delta Corp’s Links to Mahadev App Scam Reveal Cash Exchange

By Nimish Maheshwari

  • Delta Corp Ltd (DELTA IN) sells its Nepal casino business to Ability Games amidst allegations of connections to illegal betting and money laundering.
  • The ED’s investigations into Mahadev Online Book reveal a Rs 3,916 crore scam, freezing of Rs 580.78 crore assets, and involvement of companies like Ability Games.
  • CEO of Delta Corp Ltd (DELTA IN)mentioned in ED statement that they have agreed for 10Crs over and above the transaction value.

RERE: Trimming 2024 EPS Estimate Ahead of 1Q24 Earnings

By Zacks Small Cap Research

  • Despite a slightly flatter revenue/margin trajectory outlook, we remain optimistic that ATRenew’s differentiated pre-owned consumer electronics transactions and services platform in China will continue to drive outsized growth in transaction volumes, sales, fees, and profits over the long run.
  • While RERE has meaningfully outperformed recently, we believe current levels for the stock still provide investors with an attractive entry point, as awareness and appreciation of the company’s business model, growth prospects, competitive positioning, and valuation disconnect increasingly take hold.
  • Despite what we believe to be conservative inputs/assumptions, our DCF model suggests a wide disconnect between ATRenew’s fundamentals and the stock’s current price.

GlobalWafers (6488.TT): Demand Was Weaker in 1H24F, and We Hope It Will Be Better in 2H24F.

By Patrick Liao

  • 1Q24 revenue and GM are in line, but operating income at 24.3% was 1% below consensus.
  • GlobalWafers anticipates revenue in 2024 will likely be similar to 2023, which means 1H24 revenue could account for 45% of the 2024 yearly revenue.
  • The planned dividend payout for 2024 is NT$19.0, with NT$8.0 from 1H23 and NT$11 from 2H23. 

China Postal Savings Bank – Lower NIM, But Steady Lending & Credit Costs Suggests All Is Fine?

By Daniel Tabbush

  • NIM is continuing to decline, from ~2.5% at its recent peak to ~1.8% in the most recent quarter. This may be from higher rescheduled loans.
  • Loan growth ascent is strangely steady, and not indicative at all, of any business cycle. This alone is a concern, for true visibility of figures.
  • Impairment costs do not suggest concern on underlying credit metrics, but with far higher loan balances in the past few years, this is an even greater worry.

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May 08
0

Daily Brief Macro: Big Fines on Foreign Investment Banks for Naked Short Selling in Korea – Implications and more

By | Daily Briefs, Macro

In today’s briefing:

  • Big Fines on Foreign Investment Banks for Naked Short Selling in Korea – Implications
  • CX Daily: U.S. Widens China Trade Fight to Shipbuilding Which It Lost Decades Ago
  • Australia RBA Cash Rate Target 4.35% (consensus 4.35%) in May-24
  • UK Politics: The Third Way Renewed?
  • Philippines CPI Inflation 3.8% y-o-y (consensus 4.1%) in Apr-24

Big Fines on Foreign Investment Banks for Naked Short Selling in Korea – Implications

By Douglas Kim

  • The FSS mentioned it has uncovered 211 billion won of naked short sales by Credit Suisse and 8 other global banks of Korea-listed stocks between 2021 and 2023. 
  • The current ban on short selling stocks could be extended to at least 1H 2025. 
  • The Korean government’s imposing these large fines on the foreign brokers is sending a message to the foreign brokers to not engage in naked short selling.

CX Daily: U.S. Widens China Trade Fight to Shipbuilding Which It Lost Decades Ago

By Caixin Global

  • Shipbuilding /Cover Story: U.S. widens China trade fight to shipbuilding which it lost decades ago
  • China-France /: Xi looks to cement friendship and enhance trust on France visit
  • Hang Seng Index /: Beijing’s show of resolve helps drive Hang Seng on 10-session winning streak, analysts say

Australia RBA Cash Rate Target 4.35% (consensus 4.35%) in May-24

By Heteronomics AI

  • The RBA held the cash rate at 4.35% amid ongoing but moderating inflation, particularly in the services sector, reflecting a cautious approach to ensure inflation returns to the 2-3% target range by the second half of 2025.
  • Economic uncertainties, including persistent services inflation, global geopolitical risks, and the effects of previous rate hikes on consumption and economic growth, continue to influence the RBA’s policy decisions.
  • The RBA maintains a flexible policy outlook, indicating that future rate adjustments will be data-driven and contingent upon evolving economic conditions and inflation trajectories, with a strong commitment to achieving its inflation target.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

UK Politics: The Third Way Renewed?

By Alastair Newton

  • The ‘battle for Labour’s soul’ will be determined by Sir Keir Starmer’s ambition.
  • Starmer’s ambition is understated but undoubted.
  • The outcome will also be influenced by the Third Way principle that ‘what matters is what works’.

Philippines CPI Inflation 3.8% y-o-y (consensus 4.1%) in Apr-24

By Heteronomics AI

  • Philippines CPI inflation in April 2024 was 3.8% y-o-y, lower than the predicted 4.1%, showing a decrease from the previous period.
  • The current CPI inflation rate is the highest since December 2023, yet it is 0.72 percentage points below the one-year average, indicating a slower price growth in the economy.
  • The inflation rate is also 1.75 percentage points below the long-run average, indicating a significant deviation from the historical trend.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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May 08
0

Daily Brief Utilities: Polaris Renewable Energy and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Polaris Renewable Energy Inc (PIF.CN) – Tuesday, Feb 6, 2024

Polaris Renewable Energy Inc (PIF.CN) – Tuesday, Feb 6, 2024

By Value Investors Club

  • Company focused on renewable energy projects in Latin America
  • Plans to refinance debt, expand projects, and acquire small projects
  • Goal of achieving 66% EBITDA growth by 2027, improving balance sheet, growing free cash flow, trading at an attractive valuation, and paying a dividend

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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May 08
0

Daily Brief Industrials: Kawasaki Kisen Kaisha, Chilled & Frozen Logistics Holdings, Namoi Cotton Co Operative, Singamas Container Holdings, S&P 500 INDEX, Singapore Airlines, Titan International and more

By | Daily Briefs, Industrials

In today’s briefing:

  • KLINE (9107) – More Profit, More Shareholder Return 3mo Buyback Inbound
  • Chilled & Frozen’s Target Opinion Statement; Chotto Matte (Four Counterbidders)
  • Namoi Cotton (NAM AU): Bloom Times As Louis Dreyfus & Olam Agri Tangle
  • Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?
  • Major Risk-On Developments; Bullish Outlook Intact; Downgrading Health Care $XLV to Underweight
  • Singapore Airlines – 4Q Likely to Extend the Theme of Earnings Normalization as FY25 Comes into View
  • TWI: Titan announces 1st quarter 2024 results and updates the investor community on industry conditions.

KLINE (9107) – More Profit, More Shareholder Return 3mo Buyback Inbound

By Travis Lundy

  • Kawasaki Kisen Kaisha (9107 JP) today announced earnings. Ocean Network Express earnings were out earlier and beyond that, Consolidated Revs beat, OP faltered, but NP was spot on guidance.
  • Guidance for the year to March 2025 is well ahead of consensus on revenue, slightly ahead on OP, and just a wee bit ahead on NP. 
  • But the company raised its 5yr MTMP Shareholder Return from ¥500bn to ¥700bn and set a new ¥100bn (5.5%) buyback to be executed in the next 3 months.

Chilled & Frozen’s Target Opinion Statement; Chotto Matte (Four Counterbidders)

By Travis Lundy

  • Today, after the close, Chilled & Frozen Logistics Holdings (9099 JP) released a required (by the FIEA) Target Opinion Statement saying “Opinion Withheld.”
  • C&F notes that it had received 9 possible counter-proposals, offered due dili to a certain extent, and by May 1, had 4 binding offers. 
  • There are interesting competitive dynamics at play here, but cross-holding concentration matters. The question is… How much is enough?

Namoi Cotton (NAM AU): Bloom Times As Louis Dreyfus & Olam Agri Tangle

By David Blennerhassett

  • Singapore’s Olam Agri and global commodity merchant Louis Dreyfus Company (LDC) are duking it out for Namoi Cotton Co Operative (NAM AU), Australia’s largest cotton producer.
  • After both initially lobbed competing Schemes, both have now tabled off-market Offers – A$0.67/share from LDC, A$0.66/share from Olam – each contingent on a 50.1% acceptance hurdle, FIRB, and ACCC. 
  • LDC, currently holding 17%, announced it will reject Olam Agri’s Offer. Top shareholder Samuel Terry Asset Management, with 24.5%, is expected to support the winning (or superior) bid.  

Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?

By Osbert Tang, CFA

  • Singamas Container Holdings (716 HK) is interesting in that it has a net cash of US$300m (HK$2.35bn), but its market capitalisation is only HK$1.5bn. 
  • This is a possible privatisation candidate given the steep discount to cash. The thin trading volume made it difficult to function as a financing platform.
  • Business-Wise, it should have passed the trough as global container box plant utilisation is expected to improve in the next two years, driving profitability recovery.

Major Risk-On Developments; Bullish Outlook Intact; Downgrading Health Care $XLV to Underweight

By Joe Jasper

  • Over the past two weeks we’ve discussed the possibility that further downside was limited (4/23/24 Compass) and mounting evidence that suggests the pullback lows may be in (4/30/24 Compass).
  • Major risk-on developments for the broad equity market have continued to roll in over the past week, which we discuss below.
  • We continue to believe the lows are in, and we see the pullback to the 100-day MA on the S&P 500 as healthy/normal within the ongoing bull market.

Singapore Airlines – 4Q Likely to Extend the Theme of Earnings Normalization as FY25 Comes into View

By Neil Glynn

  • We expect Singapore Airlines to report a disappointing 4Q24 on 15 May, as earnings normalisation continues.
  • Inflationary pressure is a key theme at SIA, with it suffering one of the highest levels of inflation in the APAC region.
  • Our forecasts for FY25, which suggest further earnings normalisation, are c.20% below consensus at the operating level.

TWI: Titan announces 1st quarter 2024 results and updates the investor community on industry conditions.

By Zacks Small Cap Research

  • Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
  • The company serves the agricultural, earthmoving / construction, and consumer markets.
  • Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 2.0x.

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May 08
0

Daily Brief Energy/Materials: SeAH Steel Holdings, Dic Corp, Cheniere Energy, Gevo, Tethys Oil and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Quiddity Leaderboard KOSPI 200 Jun 24: One Last-Minute Change to Rankings
  • DIC (4631): Full-Year FY12/23 Update
  • Cheniere Energy Inc (LNG) – Tuesday, Feb 6, 2024
  • Gevo, Inc. – 1Q24 Results: Share Repurchase Underway
  • Tethys Oil AB (SSE: TETY): Imminent Development of Block 56 and High Impact Exploration Drilling at Block 58

Quiddity Leaderboard KOSPI 200 Jun 24: One Last-Minute Change to Rankings

By Travis Lundy

  • KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
  • The reference period for the June 2024 index rebal event ended recently. In this insight, we take a look at our final expected ADDs/DELs.
  • There has been one change to our list of expected ADDs presented in my last insight (link).

DIC (4631): Full-Year FY12/23 Update

By Shared Research

  • Dic Corp is a chemical company with a top global market share in products such as printing ink, organic pigments, and PPS compounds.
  • DIC recorded FY12/23 sales of JPY1,038.7bn, operating profit of JPY17.9bn, recurring profit of JPY9.2bn, and net loss attributable to owners of the parent of JPY39.9bn.
  • On February 13, 2024, DIC Corporation announced revisions to its long-term management targets in DIC Vision 2030.

Cheniere Energy Inc (LNG) – Tuesday, Feb 6, 2024

By Value Investors Club

  • Cheniere Energy (LNG) expected to have significant performance catalyst in 2024 with 4Q23 EPS print on 2/22/24
  • Sell side has adjusted numbers for 2024 despite recent underperformance
  • Anticipated conservative guidance for 2024 sets up positive surprise for investors due to focus on “tariff” type earnings and long-term contracts in place

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Gevo, Inc. – 1Q24 Results: Share Repurchase Underway

By Water Tower Research

  • Gevo has begun repurchasing shares under the company’s previously announced program.
  • The company has so far repurchased 5.5 million shares for $3.7 million, leaving $21.3 million available for repurchases.
  • Gevo revised spending on its Net-Zero 1 plant project. 

Tethys Oil AB (SSE: TETY): Imminent Development of Block 56 and High Impact Exploration Drilling at Block 58

By Auctus Advisors

  • 1Q24 production of 8,032 bbl/d had been previously reported.
  • The development plan for Block 56 is expected to be submitted to the government by the end of May.
  • The associated reserves and resources are expected to be disclosed at that time.

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May 08
0

Daily Brief Industrials: Kawasaki Kisen Kaisha, Chilled & Frozen Logistics Holdings, Namoi Cotton Co Operative, Singamas Container Holdings, S&P 500 INDEX, Singapore Airlines, Titan International and more

By | Daily Briefs, Industrials

In today’s briefing:

  • KLINE (9107) – More Profit, More Shareholder Return 3mo Buyback Inbound
  • Chilled & Frozen’s Target Opinion Statement; Chotto Matte (Four Counterbidders)
  • Namoi Cotton (NAM AU): Bloom Times As Louis Dreyfus & Olam Agri Tangle
  • Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?
  • Major Risk-On Developments; Bullish Outlook Intact; Downgrading Health Care $XLV to Underweight
  • Singapore Airlines – 4Q Likely to Extend the Theme of Earnings Normalization as FY25 Comes into View
  • TWI: Titan announces 1st quarter 2024 results and updates the investor community on industry conditions.

KLINE (9107) – More Profit, More Shareholder Return 3mo Buyback Inbound

By Travis Lundy

  • Kawasaki Kisen Kaisha (9107 JP) today announced earnings. Ocean Network Express earnings were out earlier and beyond that, Consolidated Revs beat, OP faltered, but NP was spot on guidance.
  • Guidance for the year to March 2025 is well ahead of consensus on revenue, slightly ahead on OP, and just a wee bit ahead on NP. 
  • But the company raised its 5yr MTMP Shareholder Return from ¥500bn to ¥700bn and set a new ¥100bn (5.5%) buyback to be executed in the next 3 months.

Chilled & Frozen’s Target Opinion Statement; Chotto Matte (Four Counterbidders)

By Travis Lundy

  • Today, after the close, Chilled & Frozen Logistics Holdings (9099 JP) released a required (by the FIEA) Target Opinion Statement saying “Opinion Withheld.”
  • C&F notes that it had received 9 possible counter-proposals, offered due dili to a certain extent, and by May 1, had 4 binding offers. 
  • There are interesting competitive dynamics at play here, but cross-holding concentration matters. The question is… How much is enough?

Namoi Cotton (NAM AU): Bloom Times As Louis Dreyfus & Olam Agri Tangle

By David Blennerhassett

  • Singapore’s Olam Agri and global commodity merchant Louis Dreyfus Company (LDC) are duking it out for Namoi Cotton Co Operative (NAM AU), Australia’s largest cotton producer.
  • After both initially lobbed competing Schemes, both have now tabled off-market Offers – A$0.67/share from LDC, A$0.66/share from Olam – each contingent on a 50.1% acceptance hurdle, FIRB, and ACCC. 
  • LDC, currently holding 17%, announced it will reject Olam Agri’s Offer. Top shareholder Samuel Terry Asset Management, with 24.5%, is expected to support the winning (or superior) bid.  

Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?

By Osbert Tang, CFA

  • Singamas Container Holdings (716 HK) is interesting in that it has a net cash of US$300m (HK$2.35bn), but its market capitalisation is only HK$1.5bn. 
  • This is a possible privatisation candidate given the steep discount to cash. The thin trading volume made it difficult to function as a financing platform.
  • Business-Wise, it should have passed the trough as global container box plant utilisation is expected to improve in the next two years, driving profitability recovery.

Major Risk-On Developments; Bullish Outlook Intact; Downgrading Health Care $XLV to Underweight

By Joe Jasper

  • Over the past two weeks we’ve discussed the possibility that further downside was limited (4/23/24 Compass) and mounting evidence that suggests the pullback lows may be in (4/30/24 Compass).
  • Major risk-on developments for the broad equity market have continued to roll in over the past week, which we discuss below.
  • We continue to believe the lows are in, and we see the pullback to the 100-day MA on the S&P 500 as healthy/normal within the ongoing bull market.

Singapore Airlines – 4Q Likely to Extend the Theme of Earnings Normalization as FY25 Comes into View

By Neil Glynn

  • We expect Singapore Airlines to report a disappointing 4Q24 on 15 May, as earnings normalisation continues.
  • Inflationary pressure is a key theme at SIA, with it suffering one of the highest levels of inflation in the APAC region.
  • Our forecasts for FY25, which suggest further earnings normalisation, are c.20% below consensus at the operating level.

TWI: Titan announces 1st quarter 2024 results and updates the investor community on industry conditions.

By Zacks Small Cap Research

  • Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
  • The company serves the agricultural, earthmoving / construction, and consumer markets.
  • Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 2.0x.

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


May 08
0

Daily Brief TMT/Internet: Nintendo, Hangzhou EZVIZ Network, Taiwan Semiconductor (TSMC) – ADR, Silicon Motion Technology, Quint Digital , Globalwafers, Novatek Microelectronics Corp, Gaia, Pureprofile Ltd and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Nintendo (7974) | Negative Surprise….Not Really
  • Quiddity Leaderboard STAR 50 Jun 24: SHORTs Down 12% Vs Peers in 1 Month; Final Ranks & New Trade
  • Taiwan Tech Weekly: Hon Hai New All-Time Highs; Asustek Soars; Leading Chip Testing Firm Exits China
  • Silicon Motion: Leader in Powerful Niche for Edge AI Memory; Plus Key Wins for Data Center Solution
  • Quint Digital: The New Era of Raghav Bahal
  • GlobalWafers (6488.TT): Demand Was Weaker in 1H24F, and We Hope It Will Be Better in 2H24F.
  • Novatek (3034.TT): 1Q24 Sales Inline; 2Q24F Sales Guidance Below Consensuses
  • Novatek Seeing Soft Consumer Electronics Demand; Muted Forward Guidance; Shares Appear at Risk
  • Gaia, Inc. – Solid Top-Line Momentum Continues in 1Q24
  • Pureprofile Ltd – EBITDA margin guidance upgraded

Nintendo (7974) | Negative Surprise….Not Really

By Mark Chadwick

  • Operating profit: FY3/24 OP was 529 billion yen (+4.9% YoY) vs analyst estimates of 537 billion (1.5% miss)
  • FY3/25 Operating guidance is 400 billion yen, significantly below analyst expectations of 480 billions (-16% miss).
  • The initial market reaction may be negative, we would use that as an opportunity to buy into the stock for the cyclical upturn in FY3/26.

Quiddity Leaderboard STAR 50 Jun 24: SHORTs Down 12% Vs Peers in 1 Month; Final Ranks & New Trade

By Janaghan Jeyakumar, CFA

  • STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
  • In my last insight (link), I discussed how the rankings had to be monitored closely before finalizing the index change expectations for the June 2024 index rebal event.
  • Now that the reference period is complete, I have discussed my final expectations for the June 2024 review. The official index changes will be announced later this month.

Taiwan Tech Weekly: Hon Hai New All-Time Highs; Asustek Soars; Leading Chip Testing Firm Exits China

By Vincent Fernando, CFA

  • Taiwan Tech Rallies Along With Rebound In Global Tech; Hon Hai, Asustek Top Gainers; KYEC a Top Loser After Announcing China Market Divestment
  • PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle 
  • ASMedia GDR Early Look – Momentum Has Been Strong, and Raising Would Grow Its Cash Base Almost 6x 

Silicon Motion: Leader in Powerful Niche for Edge AI Memory; Plus Key Wins for Data Center Solution

By Vincent Fernando, CFA

  • Silicon Motion’s lQ24 results confirmed the company’s end-demand strength as implied by previous Samsung and SK Hynix management commentary re: solid state memory.
  • Management has increased 2024E guidance, citing rising ASPs and strong demand due to its memory controller products’ usage in edge AI applications such as AI PCs and AI smartphones.
  • The street upgraded target prices across the board after the results; however we note the stock remains below its past acquistion offer price by Maxlinear and we see further upside.

Quint Digital: The New Era of Raghav Bahal

By Sudarshan Bhandari

  • Quint Digital (QUINT IN) announces alterations to its MoA, changing its name and expanding its digital ventures, including joint ventures and acquisitions.
  • Quintype Technologies India Limited’s impressive growth and the acquisition of Lee Enterprises (LEE US) highlight Quint Digital’s ambitions and potential.
  • Despite debt concerns, Quint Digital’s strategic investments in digital media and technology position it for substantial growth, potentially reshaping the digital publishing landscape.

GlobalWafers (6488.TT): Demand Was Weaker in 1H24F, and We Hope It Will Be Better in 2H24F.

By Patrick Liao

  • 1Q24 revenue and GM are in line, but operating income at 24.3% was 1% below consensus.
  • GlobalWafers anticipates revenue in 2024 will likely be similar to 2023, which means 1H24 revenue could account for 45% of the 2024 yearly revenue.
  • The planned dividend payout for 2024 is NT$19.0, with NT$8.0 from 1H23 and NT$11 from 2H23. 

Novatek (3034.TT): 1Q24 Sales Inline; 2Q24F Sales Guidance Below Consensuses

By Patrick Liao

  • The 2Q24 revenue outlook is NT$24.4-25.5bn, which was below Bloomberg consensuses NTD$26.45bn. 
  • The company sees more aggressive stocking for TVs in 2Q24, but smartphone demand is soft in 2Q24.  
  • The dividend payout rate has been maintained at 80-85% over the past few years, with no significant changes expected.  

Novatek Seeing Soft Consumer Electronics Demand; Muted Forward Guidance; Shares Appear at Risk

By Vincent Fernando, CFA

  • Novatek reported 1Q24 results yesterday after the Taiwan close; gross margin came in ahead of guidance and revenue was in-line.
  • Nevertheless, the company’s forward color regarding end market display applications demand in 2Q24 and 2024 was relatively muted.
  • Given the stock is at all-time highs and up about 25% since early February, we see the stock at risk of selling in the near-term. We rate Novatek as Underperform.

Gaia, Inc. – Solid Top-Line Momentum Continues in 1Q24

By Water Tower Research

  • Gaia reported strong 1Q24 results, with revenue of $21.7 million (up 11%), 33,000 net member additions for a total membership count of 839,000 (all-time high), and strong operating cash flow of $5.9 million.
  • International revenue growth was particularly strong at 20.4%, compared with respectable US growth of 3.7%.
  • Member acquisition costs decreased 10%, partly as a result of a focus on direct-to-paid marketing campaigns, whereby free trial periods are replaced by special incentives to lock in longer-term membership commitments at attractive rates. This also fueled healthy deferred revenue growth of $2.0 million during the quarter.

Pureprofile Ltd – EBITDA margin guidance upgraded

By Research as a Service (RaaS)

  • Pureprofile Ltd (ASX:PPL) is a data analytics and consumer insights company underpinned by proprietary technology, servicing business decision makers in brands and media companies as well as market researchers.
  • Pureprofile reported a 6% increase in Q3 FY24 revenue to $10.9m and a 49% decline in Q3 EBITDA to $0.5m versus the previous corresponding period (pcp).
  • Q3 is seasonally the weakest quarter for PPL and EBITDA was affected, in part, by the change in executive remuneration policy to cash-based payments.

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May 08
0

Daily Brief Health Care: WuXi XDC Cayman , Shenyang Xingqi Pharmaceutical, Recce Ltd, Zimvie and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Wuxi XDC Lock-Up – US$300m Lockup Expiry Could See Some Selling Owing to the Regulatory Overhang
  • ChiNext/​​​ChiNext50 Index Rebalance Preview: Outperformance Continues
  • Recce Pharmaceuticals – Advances on several fronts
  • Zimvie Inc (ZIMV) – Tuesday, Feb 6, 2024

Wuxi XDC Lock-Up – US$300m Lockup Expiry Could See Some Selling Owing to the Regulatory Overhang

By Clarence Chu

  • WuXi XDC Cayman (2268 HK) was listed in Hong Kong on 17th Nov 2023 after raising US$470m. Its six-month lockup will expire on 16th May 2024.
  • WuXi XDC Cayman (WXDC) is a contract research, development, and manufacturing organization (CRDMO) focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.
  • In this note, we will talk about the lock-up dynamics and updates since our last note.

ChiNext/​​​ChiNext50 Index Rebalance Preview: Outperformance Continues

By Brian Freitas

  • With the review period now complete, we forecast 7 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
  • There are 4 stocks that could be added to both indices while some stocks will also have same way flows from CSI Smallcap 500 Index (SH000905 INDEX) trackers.
  • The potential adds have outperformed the potential deletes over the last 6 months. There has been a big move higher in the potential adds over the last few weeks.

Recce Pharmaceuticals – Advances on several fronts

By Edison Investment Research

Recce Pharmaceuticals has reported several encouraging developments in recent weeks for its lead development compound RECCE® 327 (R327). The intravenous (IV) R327 formulation is advancing to a higher dose level (4,000mg) in its ongoing Phase I/II rapid infusion study and the company is progressing in its plan to submit a US Investigational New Drug (IND) application to commence a US Phase II complicated urinary tract infection (cUTI) study before end-CY24. Recce is also planning to start an Indonesian Phase III registrational study in Q3 CY24, which we anticipate could lead to initial commercialisation in South-East Asia in H2 CY26. We have made minor adjustments to our valuation and now obtain a risk-adjusted net present value (rNPV) of A$661.3m (or A$3.27/share), versus A$644.4m previously.

Zimvie Inc (ZIMV) – Tuesday, Feb 6, 2024

By Value Investors Club

  • ZimVie Inc. historically focused on dental and spine industries since spinning out from Zimmer Biomet in 2022
  • Company faced challenges with large debt burden and declining spine business, leading to discounted valuation
  • Recent sale of spine business to HIG Capital for $375 million expected to eliminate overhangs, simplify valuation, and position company for stronger future performance

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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